Rush Notches Record Q2 Net Income, Revenue
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Truck dealership Rush Enterprises Inc. reported record second-quarter net income and revenue, citing strong freight demand and consumer spending that resulted in increased sales of commercial vehicles, parts and services.
Net income for the quarter ended June 30 was $110.6 million, or $1.92 per diluted share, on revenue of $1.8 billion compared with net income of $58 million, $1, and revenue of $1.3 billion a year earlier.
The company declared a cash dividend of 21 cents per share of common stock, a 10.5% increase over the prior quarter.
Rush
“New truck production capacity continues to be limited due to ongoing component part supply chain issues, but our Class 8 new truck sales substantially outperformed the market in the second quarter,” Chairman and CEO W.M. “Rusty” Rush said in a release. “In addition, we achieved strong aftermarket revenue growth due to strong demand for parts and service.”
The company reported it sold 4,168 new Class 8 trucks in the second quarter, an increase of 41% compared with the second quarter of 2021, which accounted for 6.4% of the new U.S. Class 8 truck market and 1.7% of the Canada Class 8 truck market.
Revenue from new heavy-duty vehicles was $691 million compared with $435 million a year earlier.
Rush Enterprises Second Quarter 2022 Earnings Report by Transport Topics on Scribd
Rush sold 2,815 new Classes 4-7 medium-duty commercial vehicles in the second quarter, which was flat compared with the second quarter of 2021, representing 5.1% of the U.S. Classes 4-7 commercial vehicle market and 1.3% of the Canada Classes 5-7 commercial vehicle market.
Revenue from new medium-duty vehicles, including buses, was $240 million compared with $226 million a year earlier.
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“It should be noted that we are an industry leader with respect to alternative energy commercial vehicles, including both compressed natural gas vehicles and electric vehicles, and we are seeing healthy interest from both Class 8 and medium-duty customers with respect to such vehicles, which we expect to continue moving forward,” Rush said.
The company reported aftermarket products and services accounted for approximately 62% of its total gross profit in the quarter, with parts, service and collision center revenues reaching $598.3 million.
Rush pointed to the value of the acquisition of 19 dealership locations from The Summit Truck Group in the fourth quarter of 2021.
“These additional locations, in addition to the 15 locations in Canada whose operating results are now consolidated into the company’s financials as a result of the acquisition of an additional 30% interest in Rush Truck Centres of Canada Ltd. and the $9.8 million gain associated therewith, positively impacted our financial performance in the second quarter,” Rush said.
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Rush Truck Leasing operates 57 PacLease and Idealease franchises across the United States and Canada with more than 10,100 trucks in its lease and rental fleet, and more than 1,600 trucks under contract maintenance agreements. Lease and rental revenue increased 31.2% in the second quarter of 2022 compared with a year ago — primarily related to the Q4 acquisitions of the Summit Idealease locations, according to the San Antonio-based company.
For the six-month period, net income was $203 million, $3.52, on revenue of $3.3 billion compared with net income of $103 million, $1.79, and revenue of $2.5 billion a year earlier.
The company owns and operates Rush Truck Centers, the largest network of commercial vehicle dealerships in North America, with more than 150 locations in 23 states and Ontario, Canada, including 125 franchised dealership locations.
The company sells trucks from Peterbilt Motors Co., a brand of Paccar Inc.; Traton SE subsidiary Navistar Inc.’s International brand; Hino Trucks, a Toyota Group company; Isuzu Commercial Truck of America Inc.; and Ford Motor Co. Its bus brands include IC Bus, from Navistar, and Blue Bird.
